IBM shares have had a challenging year in 2024 but still show promise due to solid foundations, a new growth engine with the HashiCorp acquisition, an attractive valuation, compelling dividend yield, and a bullish technical setup. Despite underperforming the broader market, IBM’s move towards hybrid cloud and AI strategies has driven earnings growth and margin expansion. The recent acquisition of HashiCorp is seen as a positive bet for the company’s future growth potential. Additionally, IBM’s valuation as a value option in the software market sets it apart from other high-profile tech leaders. The company’s strong dividend yield and technical setup further support a bullish outlook. In conclusion, IBM’s outlook remains strong with potential long-term returns for shareholders, but caution is advised due to potential risks such as macroeconomic conditions and quarterly results. Tracking points for the company include gross margin trends, the HashiCorp acquisition, and performance in the software and consulting segment.
Article Source
https://seekingalpha.com/article/4701675-ibm-stock-5-reasons-to-stay-bullish-into-the-second-half-of-2024
